Goldman Sachs upgraded Nasdaq OMX Group to buy from neutral, citing underappreciated growth prospects. The brokerage said it sees the Nasdaq Stock Market parent company getting revenue of about $10 million a quarter from its new N2EX British wholesale power exchange, which the company runs along with Nord Pool.

Goldman also said the company's independent subsidiary International Derivatives Clearing Group, while facing competition from a well-entrenched LCH.Clearnet, CME and the New York Stock Exchange, could add between $1 million to $2 million in revenue per month.

Analysts at Goldman said the pressure from declining market share is largely abating.

Even if share does move away from the exchange, each 1 percent decline in market share in U.S. equities amounts to only about $0.015 cents in annual earnings, the brokerage said in a note to clients.

Goldman added that it sees the ebb and flow of U.S. equities as less of a factor on Nasdaq's valuation, given the company's increased revenue diversification, geographically and across products.

With many investors focused on the United States, the opportunities in Europe and through a potential joint venture with Brazil's BM&F Bovespa highlight our more optimistic view, the brokerage said.

(Reporting by Brenton Cordeiro in Bangalore; Editing by Anil D'Silva)

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